A Business at a Glance
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APPLIED INDUSTRIAL TECHNOLOGIES INC
AIT
$13.5B
Mkt Cap
$347.06
+0.87%
APPLIED INDUSTRIAL TECHNOLOGIES INC (AIT) has a current P/E ratio of 33.1, compared to its historical median P/E of 18.5. The stock is currently considered Fair based on its historical valuation range.
APPLIED INDUSTRIAL TECHNOLOGIES INC (AIT) has a 5-year average return on invested capital (ROIC) of 16.0%. This indicates strong capital allocation and a potential competitive advantage.
APPLIED INDUSTRIAL TECHNOLOGIES INC (AIT) has a market capitalization of $18.8B. It is classified as a large-cap stock.
Yes, APPLIED INDUSTRIAL TECHNOLOGIES INC (AIT) pays a dividend with a trailing twelve-month yield of 0.38%. The company also returns capital through share buybacks, with a buyback yield of 1.64%.
Based on historical P/E analysis, APPLIED INDUSTRIAL TECHNOLOGIES INC (AIT) appears fair. The current P/E of 33.1 is 79% above its historical median of 18.5. The estimated fair value CAGR (P/E method) is 32.5%.
APPLIED INDUSTRIAL TECHNOLOGIES INC (AIT) operates in the Wholesale-Machinery, Equipment & Supplies industry, within the Consumer Cyclical sector.
Applied Industrial Technologies is a leading distributor and technical solutions provider of industrial motion, power, control, and automation technologies, operating through approximately 6,800 employee associates across approximately 600 facilities including service centers, fluid power operations, flow control, and automation businesses, as well as repair shops and distribution centers. The company offers more than 9.2 million stock keeping units focused on industrial bearings, power transmission products, fluid power components and systems, specialty flow control, and advanced factory automation solutions, complemented by general maintenance products and value-added services including inventory management, engineering, design, assembly, repair, systems integration, and customized mechanical and fabricated services. Applied serves customers across maintenance, repair, and operating (MRO), original equipment manufacturing (OEM), and new system install applications primarily in North America, with additional operations in Australia, New Zealand, and Singapore. The company's value proposition centers on deep technical expertise in motion control systems, leading positions in engineered fluid power and flow control solutions, advanced automation capabilities, broad in-stock product availability with local inventory and repair capabilities, extensive domain expertise of customers' facilities and production equipment, and tenured relationships with industrial customers and leading suppliers. Applied's business model emphasizes helping customers minimize production downtime, improve machine performance, reduce procurement and maintenance costs, and optimize facility efficiency and safety, with the Service Center segment focused on critical "break-fix" situations requiring localized inventory and timely delivery, while the Engineered Solutions segment designs, engineers, and integrates solutions to enhance operational productivity, cost efficiency, and automation.
【Accelerating growth momentum emerging】 Management expects positive order momentum and expanding business funnels to translate into more meaningful sales growth, with several secular tailwinds including North American reshoring activity, structural labor constraints, and heightened focus on safety and quality driving adoption of collaborative robots, mobile robots, machine vision, and IoT solutions. The company anticipates Engineered Solutions segment orders and backlog to continue building positive momentum, with flow control backlog at multi-year highs and expanding opportunities in data center thermal management, semiconductor equipment cycles, and electric-powered fluid power systems. Applied remains constructive on achieving mid-to-high teen incremental EBITDA margins at mid-single-digit organic sales growth, supported by inherent operating leverage, ongoing expansion of the Engineered Solutions segment, and local account growth initiatives, while M&A is expected to be a stronger contributor over the next 12 to 18 months as the company actively evaluates mid-size and smaller tuck-in targets across both segments.
| Metric | Target | Period |
|---|---|---|
| EPS | $10.60–$10.75 | FY2026 |
| Sales growth | 7.2%–7.7% | FY2026 |
| Organic sales growth | 3.8%–4.2% | FY2026 |
| EBITDA margins | 12.3%–12.4% | FY2026 |
| Q4 FY2026 EPS | $2.85–$2.96 | Q4 FY2026 |
| Q4 FY2026 organic sales growth | 4%–5.5% | Q4 FY2026 |
| Q4 FY2026 EBITDA margins | 12.6%–12.8% | Q4 FY2026 |
EPS (FY2026): “We now project EPS within a range of $10.60-$10.75 based on sales growth of 7.2%-7.7%, including a 3.8%-4.2% organic sales growth assumption, as well as EBITDA margins of 12.3%-12.4%.”
Sales growth (FY2026): “We now project EPS within a range of $10.60-$10.75 based on sales growth of 7.2%-7.7%, including a 3.8%-4.2% organic sales growth assumption, as well as EBITDA margins of 12.3%-12.4%.”
Organic sales growth (FY2026): “We now project EPS within a range of $10.60-$10.75 based on sales growth of 7.2%-7.7%, including a 3.8%-4.2% organic sales growth assumption, as well as EBITDA margins of 12.3%-12.4%.”
EBITDA margins (FY2026): “We now project EPS within a range of $10.60-$10.75 based on sales growth of 7.2%-7.7%, including a 3.8%-4.2% organic sales growth assumption, as well as EBITDA margins of 12.3%-12.4%.”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2026 Earnings Call, Q3 FY2026 Earnings Call, Q2 FY2026 Earnings Call, Q1 FY2026 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 4.8B | 4.6B | 4.5B | 4.4B | 3.8B | 3.2B |
| Net Income | 404M | 393M | 386M | 347M | 257M | 145M |
| EPS | $8.31 | $10.12 | $9.83 | $8.84 | $6.58 | $3.68 |
| Free Cash Flow | 439M | 465M | 347M | 317M | 169M | 226M |
| ROIC | 19.7% | 17.0% | 17.8% | 17.6% | 15.9% | 11.5% |
| Gross Margin | 30.4% | 30.3% | 29.8% | 29.2% | 29.0% | 28.9% |
| Debt/Equity | 0.29 | 0.52 | 0.58 | 0.69 | 0.96 | 0.89 |
| Dividends/Share | $1.31 | $1.66 | $1.44 | $1.38 | $1.34 | $1.30 |
| Operating Income | 525M | 499M | 496M | 473M | 358M | 205M |
| Operating Margin | 10.9% | 10.9% | 11.1% | 10.7% | 9.4% | 6.3% |
| ROE | 21.7% | 22.2% | 24.5% | 26.6% | 24.7% | 16.3% |
| Shares Outstanding | 54M | 39M | 39M | 39M | 39M | 39M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 2.5B | 2.8B | 2.5B | 2.6B | 3.1B | 3.5B | 3.2B | 3.2B | 3.8B | 4.4B | 4.5B | 4.6B | 4.8B |
| Gross Margin | 27.9% | 28.0% | 28.1% | 28.4% | 28.8% | 29.0% | 28.9% | 28.9% | 29.0% | 29.2% | 29.8% | 30.3% | 30.4% |
| R&D | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A | 523M | 585M | 553M | 562M | 658M | 742M | 718M | 681M | 749M | 814M | 841M | 885M | 945M |
| EBIT | 164M | 185M | 90M | 175M | 226M | 234M | 89M | 205M | 358M | 473M | 496M | 499M | 525M |
| Op. Margin | 6.7% | 6.7% | 3.6% | 6.8% | 7.3% | 6.7% | 2.7% | 6.3% | 9.4% | 10.7% | 11.1% | 10.9% | 10.9% |
| Net Income | 113M | 115M | 30M | 134M | 142M | 144M | 24M | 145M | 257M | 347M | 386M | 393M | 404M |
| Net Margin | 4.6% | 4.2% | 1.2% | 5.2% | 4.6% | 4.1% | 0.7% | 4.5% | 6.8% | 7.9% | 8.6% | 8.6% | 8.3% |
| Non-Recurring | 53K | 1.3M | 64M | 1.5M | 335K | 459K | 132M | 2.4M | 0 | 0 | 0 | 0 | 0 |
| Returns on Capital | |||||||||||||
| ROIC | 13.2% | 11.8% | 6.0% | 14.5% | 11.2% | 10.2% | 3.3% | 11.5% | 15.9% | 17.6% | 17.8% | 17.0% | 19.7% |
| ROE | 14.5% | 15.0% | 4.2% | 19.1% | 18.2% | 16.8% | 2.8% | 16.3% | 24.7% | 26.6% | 24.5% | 22.2% | 21.7% |
| ROA | 9.4% | 8.3% | 2.2% | 9.9% | 7.7% | 6.2% | 1.0% | 6.4% | 10.9% | 13.3% | 13.5% | 12.8% | 13.5% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 110M | 157M | 162M | 165M | 147M | 181M | 297M | 242M | 188M | 344M | 371M | 492M | 466M |
| Free Cash Flow | 90M | 142M | 149M | 148M | 124M | 162M | 277M | 226M | 169M | 317M | 347M | 465M | 439M |
| Owner Earnings | 78M | 110M | 118M | 121M | 93M | 114M | 230M | 176M | 126M | 278M | 303M | 417M | 185M |
| CapEx | 20M | 15M | 13M | 17M | 23M | 19M | 20M | 16M | 18M | 26M | 25M | 27M | 27M |
| Maint. CapEx | 28M | 42M | 42M | 40M | 50M | 62M | 63M | 55M | 54M | 53M | 52M | 60M | 268M |
| Growth CapEx | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| D&A | 28M | 42M | 42M | 40M | 50M | 62M | 63M | 55M | 54M | 53M | 52M | 60M | 268M |
| CapEx/OCF | 18.3% | 9.7% | 8.1% | 10.4% | 15.8% | 10.5% | 6.8% | 6.6% | 9.7% | 7.7% | 6.7% | 5.5% | 5.8% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 40M | 43M | 43M | 45M | 46M | 47M | 49M | 51M | 52M | 53M | 56M | 64M | 71M |
| Dividend Yield | 2.4% | 2.7% | 3.1% | 2.3% | 2.0% | 2.1% | 2.3% | 1.7% | 1.4% | 1.1% | 0.8% | 0.7% | 0.4% |
| Share Buybacks | 37M | 77M | 37M | 8.2M | 23M | 11M | 0 | 40M | 14M | 716K | 73M | 153M | 309M |
| Buyback Yield | 2.1% | 5.4% | 2.5% | 0.4% | 0.9% | 0.5% | N/A | 1.2% | 0.4% | 0.0% | 1.0% | 1.7% | 1.6% |
| Stock-Based Comp | 4.5M | 4.5M | 2.5M | 3.6M | 4.7M | 4.5M | 4.0M | 10M | 8.1M | 13M | 16M | 15M | 13M |
| Debt Repayment | 0 | 0 | 719K | 0 | 3.3M | 775K | 95K | 399K | 2.0M | 0 | 0 | 0 | 0 |
| Balance Sheet | |||||||||||||
| Net Debt | 100M | 252M | 301M | 206M | 910M | 850M | 665M | 571M | 915M | 662M | 521M | 568M | 199M |
| Cash & Equiv. | 71M | 69M | 60M | 105M | 54M | 108M | 269M | 258M | 184M | 344M | 461M | 388M | 343M |
| Long-Term Debt | 168M | 318M | 325M | 287M | 945M | 909M | 855M | 785M | 649M | 597M | 572M | 572M | 347M |
| Debt/Equity | 0.21 | 0.43 | 0.55 | 0.42 | 1.18 | 1.07 | 1.11 | 0.89 | 0.96 | 0.69 | 0.58 | 0.52 | 0.29 |
| Interest Coverage | 182.6 | 22.7 | 10.0 | 19.9 | 9.4 | 5.7 | 2.4 | 6.7 | 13.4 | 19.1 | 24.1 | 27.4 | 40.0 |
| Equity | 800M | 741M | 658M | 745M | 815M | 897M | 844M | 933M | 1.1B | 1.5B | 1.7B | 1.8B | 1.9B |
| Total Assets | 1.3B | 1.4B | 1.3B | 1.4B | 2.3B | 2.3B | 2.3B | 2.3B | 2.5B | 2.7B | 3.0B | 3.2B | 3.0B |
| Total Liabilities | 534M | 691M | 654M | 642M | 1.5B | 1.4B | 1.4B | 1.3B | 1.3B | 1.3B | 1.3B | 1.3B | 1.1B |
| Intangibles | 160M | 199M | 191M | 164M | 436M | 369M | 343M | 280M | 251M | 236M | 246M | 349M | 323M |
| Retained Earnings | 897M | 970M | 945M | 1.0B | 1.1B | 1.2B | 1.2B | 1.3B | 1.5B | 1.8B | 2.1B | 2.4B | 2.7B |
| Working Capital | 545M | 536M | 507M | 573M | 625M | 724M | 734M | 769M | 860M | 1.1B | 1.3B | 1.2B | 1.0B |
| Current Assets | 836M | 846M | 782M | 883M | 1.1B | 1.1B | 1.2B | 1.2B | 1.4B | 1.6B | 1.8B | 1.7B | 1.6B |
| Current Liabilities | 291M | 310M | 274M | 310M | 433M | 424M | 426M | 428M | 500M | 540M | 501M | 526M | 537M |
| Per Share Data | |||||||||||||
| EPS | 2.67 | 2.80 | 0.75 | 3.40 | 3.61 | 3.68 | 0.62 | 3.68 | 6.58 | 8.84 | 9.83 | 10.12 | 8.31 |
| Owner EPS | 1.84 | 2.67 | 2.99 | 3.08 | 2.36 | 2.91 | 5.93 | 4.49 | 3.22 | 7.09 | 7.72 | 10.74 | 3.42 |
| Book Value | 18.94 | 17.97 | 16.68 | 18.92 | 20.77 | 22.93 | 21.75 | 23.71 | 29.38 | 37.18 | 43.03 | 47.50 | 34.31 |
| Cash Flow/Share | 2.61 | 3.81 | 4.11 | 4.18 | 3.75 | 4.62 | 7.65 | 6.14 | 4.79 | 8.77 | 9.46 | 12.68 | 12.38 |
| Dividends/Share | 0.96 | 1.04 | 1.10 | 1.14 | 1.18 | 1.22 | 1.26 | 1.30 | 1.34 | 1.38 | 1.44 | 1.66 | 1.31 |
| Shares Out. | 42.3M | 41.2M | 39.4M | 39.4M | 39.2M | 39.1M | 38.8M | 39.3M | 39.1M | 39.2M | 39.2M | 38.8M | 54.2M |
| Valuation | |||||||||||||
| P/E Ratio | 15.7 | 12.4 | 49.8 | 15.3 | 17.5 | 15.4 | 89.4 | 23.1 | 13.9 | 15.7 | 19.5 | 22.8 | 41.8 |
| P/FCF | 19.7 | 10.1 | 9.9 | 13.9 | 20.0 | 13.7 | 7.8 | 14.8 | 21.1 | 17.2 | 21.7 | 19.2 | 42.9 |
| EV/EBIT | 11.0 | 8.7 | 19.0 | 12.2 | 14.8 | 12.9 | 29.5 | 18.0 | 11.0 | 11.5 | 14.6 | 17.5 | 36.2 |
| Price/Book | 2.2 | 1.9 | 2.2 | 2.8 | 3.0 | 2.5 | 2.5 | 3.6 | 3.1 | 3.7 | 4.5 | 4.9 | 10.1 |
| Price/Sales | 0.7 | 0.6 | 0.6 | 0.7 | 0.8 | 0.7 | 0.6 | 0.9 | 1.0 | 1.1 | 1.5 | 2.0 | 3.9 |
| FCF Yield | 5.1% | 9.9% | 10.1% | 7.2% | 5.0% | 7.3% | 12.9% | 6.8% | 4.7% | 5.8% | 4.6% | 5.2% | 2.3% |
| Market Cap | 1.8B | 1.4B | 1.5B | 2.0B | 2.5B | 2.2B | 2.1B | 3.3B | 3.6B | 5.5B | 7.5B | 8.9B | 18.8B |
| Avg. Price | 40.16 | 37.78 | 35.21 | 48.91 | 58.95 | 58.61 | 53.71 | 73.61 | 93.40 | 119.78 | 168.29 | 229.36 | 347.06 |
| Year-End Price | 42.03 | 34.63 | 37.35 | 52.04 | 63.17 | 56.59 | 55.42 | 84.94 | 91.55 | 139.22 | 191.62 | 230.45 | 347.06 |
APPLIED INDUSTRIAL TECHNOLOGIES INC passes 6 of 9 quality checks, suggesting mixed fundamentals.
APPLIED INDUSTRIAL TECHNOLOGIES INC trades at 33.1x trailing earnings, compared to its 15-year median P/E of 18.5x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 28.2x vs a median of 16.0x. The company's 5-year average ROIC is 16.0% with a gross margin of 29.5%. Total shareholder yield (dividends + buybacks) is 2.0%. At current prices, the estimated annualized return to fair value is +14.9%.
APPLIED INDUSTRIAL TECHNOLOGIES INC (AIT) reported annual revenue of $4.6 billion in its most recent fiscal year, based on SEC EDGAR filings.
APPLIED INDUSTRIAL TECHNOLOGIES INC (AIT) has a net profit margin of 8.6%. This is a modest margin.
APPLIED INDUSTRIAL TECHNOLOGIES INC (AIT) generated $465 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
APPLIED INDUSTRIAL TECHNOLOGIES INC (AIT) has a debt-to-equity ratio of 0.52. This indicates moderate leverage.
APPLIED INDUSTRIAL TECHNOLOGIES INC (AIT) reported earnings per share (EPS) of $10.12 in its most recent fiscal year.
APPLIED INDUSTRIAL TECHNOLOGIES INC (AIT) has a return on equity (ROE) of 22.2%. This indicates the company generates strong returns for shareholders.
APPLIED INDUSTRIAL TECHNOLOGIES INC (AIT) has a 5-year average gross margin of 29.5%. This lower margin is typical of capital-intensive or commodity businesses.
The Ledger Terminal provides 15 years of financial data for APPLIED INDUSTRIAL TECHNOLOGIES INC (AIT), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
APPLIED INDUSTRIAL TECHNOLOGIES INC (AIT) has a book value per share of $47.50, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects positive order momentum and expanding business funnels to translate into more meaningful sales growth, with several secular tailwinds including North American reshoring activity, structural labor constraints, and heightened focus on safety and quality driving adoption of collaborative robots, mobile robots, machine vision, and IoT solutions. The company anticipates Engineered Solutions segment orders and backlog to continue building positive momentum, with flow control backlog at multi-year highs and expanding opportunities in data center thermal management, semiconductor equipment cycles, and electric-powered fluid power systems. Applied remains constructive on achieving mid-to-high teen incremental EBITDA margins at mid-single-digit organic sales growth, supported by inherent operating leverage, ongoing expansion of the Engineered Solutions segment, and local account growth initiatives, while M&A is expected to be a stronger contributor over the next 12 to 18 months as the company actively evaluates mid-size and smaller tuck-in targets across both segments.
Based on recent SEC filings and earnings calls, APPLIED INDUSTRIAL TECHNOLOGIES INC (AIT) has provided the following forward guidance: EPS: $10.60–$10.75 (FY2026); Sales growth: 7.2%–7.7% (FY2026); Organic sales growth: 3.8%–4.2% (FY2026); EBITDA margins: 12.3%–12.4% (FY2026); Q4 FY2026 EPS: $2.85–$2.96 (Q4 FY2026), plus 2 additional metrics.
Q4 FY2026 EPS (Q4 FY2026): “Our updated guidance assumes a fiscal fourth quarter EPS range of $2.85-$2.96 on organic sales growth of 4%-5.5% year-over-year, as well as EBITDA margins in a range of 12.6%-12.8%.”
Q4 FY2026 organic sales growth (Q4 FY2026): “Our updated guidance assumes a fiscal fourth quarter EPS range of $2.85-$2.96 on organic sales growth of 4%-5.5% year-over-year, as well as EBITDA margins in a range of 12.6%-12.8%.”
Q4 FY2026 EBITDA margins (Q4 FY2026): “Our updated guidance assumes a fiscal fourth quarter EPS range of $2.85-$2.96 on organic sales growth of 4%-5.5% year-over-year, as well as EBITDA margins in a range of 12.6%-12.8%.”